What countries are using United States dollar currency?

The United States dollar, also referred to as the U.S. dollar or American dollar, is officially used by the United States of America and its unincorporated organized territories including Puerto Rico, Northern Mariana Islands, U.S. Virgin Islands, Guam, American Samoa and its unincorporated unorganized territories of United States Minor Outlying Islands.

The United States dollar is the dominate reserve currency. The major reserve currencies are the United States dollar (USD), Euro (EUR), Pound sterling (GBP), Japanese yen (JPY), Swiss franc (CHF) and Canadian dollar (CAD). The two currencies of Special drawing rights (SDRs) and Chinese yuan (CNY) are proposed as the two newly added major reserve currencies. The US dollar and the Euro make up almost 90% of allocated Reserves globally and the U.S. dollar itself gets almost 60% share. Since the United States dollar is regarded as one of the most stable currencies, dollarization has being proceeded among many countries, which means the U.S.dollar having been used alongside with or instead of their domestic currencies.

EI Salvador and Ecuador have adopted the United States dollar (USD) as their sole legal tender and cease to issue their domestic currencies. The Panamanian balboa (PAB) and the U.S dollar are both official currencies being used in Panama. Panama uses Panamanian baloa coins in addition to U.S.dollar coins meanwhile only the U.S.dollar banknotes are in circulation.

Dollarization---- The U.S. dollar being used as official currency.

Country name

Legal tender

Currency code

Continent location

Dollarization since

Notes

EI Salvador

United States dollar

USD

North America

Since 2001

Panama

Panamanian balboa

PAB

North America

Since 1904

Panamanian balboa has always been circulated alongside dollars at par and both are official currencies.

Ecuador

United States dollar

USD

North America

Since 2000

Most countries and territories use the United States dollar (USD) as de facto currency, either alongside with or instead of their domestic currencies.

Dollarization---- The United States dollar (USD) being used as de facto currency.

Country name

Legal tender

Currency code

Continent location

Dollarization since

Notes

The Bahamas

Bahamian dollar

BSD

North America

since 1966

Barbados

Barbadian dollar

BBD

North America

since 1975

Cambodia

Cambodian riel

KHR

Asia

since 1980

Haiti

Haitian Gourde

HTG

North America

1912-1989

Lebanon

Lebanese pound

LBP

Asia

since 1997

LBP is pegged with U.S. dollar
at 1USD= 1507.5 LBP

Liberia

Liberian dollar

LRD

Africa

since 1944

Zimbabwe

Zimbabwean dollar

ZWL

Africa

since 2009

Afghanistan

Afghan afghani

AFN

Asia

Since 2002, Afghani (code: AFN) is used more widely instead of the U.S.dollar.

Maldives

Maldivian rufiyaa

MVR

Asia

The united states dollars are widely accepted in Maldives alongside with Maldivian rufiyaa. Officially exchange rate is at 1 USD= 12.8 MVR

Bermuda (UK)

Bermuda dollar

BMD

North America

Bermuda is British territory.

Cayman Islands (UK)

Cayman Islands dollar

KYD

North America

Cayman Islands are British territory.

British Indian Ocean Territory (UK)

Pound sterling

GBP

Asia

British territory

East Timor

United States dollar

USD

Asia

East Timor centavo coins were introduced in 2003 for use alongside U.S. dollar banknotes and coins

Marshall Islands

United States dollar

USD

Oceania

Since 1944

Federated States of Micronesia

United States dollar

USD

Oceania

Since 1944

Palau

United States dollar

USD

Oceania

since 1944

Caribbean Netherlands (Netherlands)

United States Dollar

USD

North America

since 2011

Netherlands territory

British Virgin Islands(UK)

United States Dollar

USD

North America

since 1959

British territory

Turks and Caicos Islands (UK)

United States Dollar

USD

North America

1. Turks and Calcos Islands are a British territory.
B. Since 25 May 2013, he Bahamian dollar will be used alongside the U.S.dollar.

United States dollar history

The United States dollar was created in 1792 and based upon the Spanish dollar. The Spanish dollar, also known as the piece of eight was a silver coin and was worth eight reales. The Mexican peso was originally the name of the eight-real coins issued in Mexico by Spain. Therefore, the U.S.dollar and Mexican peso have the common origin of Spanish dollar and both continuing to use its “$” as currency symbol. The three currencies of the Spanish silver dollars, the U.S. silver dollars and the Mexican silver pesos remained circulated as legal currencies in the United States since 1792 until the Coinage Act of 1857 which announced to forbid using foreign coins as legal currencies.

The U.S. dollar firstly was defined in bimetallism (silver and gold standards) as 371.25 grains (24.056 g) of silver or 24.75 grains (1.6038 g) of pure gold following a fixed 15:1 ratio of silver to gold.

The dollar was shifted in the gold standard to 23.2 grains (1.50 g) in 1834, and it was slightly adjusted to 23.22 grains (1.505 g) in 1837. The United States passed the Gold Standard Act in 1900 which defined the gold as the only standard for redeeming paper money. The Act fixed the dollar precise value at 25.08 grains of gold at 90% purity, equivalent to 23.22 grains (1.5046 g) of pure gold, and set $20.67 per 1 troy ounce of gold. Eventually this gold standard was dropped in 1933.

In 1934, the dollar was defined at 13.71 grains (0.888 g) of gold. A new monetary management, The Bretton Woods system was established by 44 Allied nations in 1944 and set the U.S.dollar as gold standard currency. Under the system, the value of the U.S. dollar was anchored to the value of gold at $35 per ounce, meanwhile each country maintained its fixed exchange rate by tying its currency to the U.S dollar. The two great international financial institutions of International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD, former World Bank) were established also which managed the Bretton Woods system. IMF guaranteed the U.S.dollar be convertibility into gold and maintained the system members’ confidence to the U.S.dollar. IBRD provided enough dollars as an international liquidity. In 1971, the Bretton Woods system was ended, the convertibility of the U.S.dollars to gold was terminated.

In 1973, the U.S.dollar was defined as 0.73662 g of gold and set the gold value at $42.22 per ounce. Including the United States, many countries quit the fixed exchange rate system and started to follow the floating exchange rates.

United States dollar coins and banknotes

The United States dollar is subdivided into 100 cents or 10 dimes. It was subdivided as 1000 Mill when the U.S.dollar was created, however it has been withdrawn circulation. Currently frequently used coins are 1 cent, 5 cents, 10 cents (1 dime), 25 cents (quarter). Frequently used banknotes are 1, 5, 10, 20, 50, 100 dollars.

Currencies pegged to the United States dollar

The U.S.dollar was pegged by many currencies since it’s regarded as a stable currency.

Currencies pegged to the U.S. Dollar (USD)

currency name

currency code

Pegged with U.S. dollar
at rate of:

Users

Continent

Djiboutian Franc

DJF

Pegged with U.S. dollar
1 USD = 177.721 DJF

djibouti

Africa

Eritrean nakfa

ERN

Pegged with U.S. dollar
1 USD= 15 ERN

Eritrea

Africa

Bahraini dinar

BHD

Pegged with U.S. dollar
1 USD= 0.376 BHD

Bahrain

Asia

Jordanian dinar

JOD

Pegged with U.S. dollar
1 USD= 0.709 JOD

Jordan

Asia

Lebanese pound

LBP

Pegged with U.S. dollar
1 USD= 1507.5 LBP

Lebanon

Asia

Omani rial

OMR

Pegged with U.S.dollar
1 OMR= 2.6008 USD

Oman

Asia

Qatari riyal

QAR

Pegged with U.S. dollar
1 USD= 3.64 QAR

Qatar

Asia

Saudi riyal

SAR

Pegged with U.S. dollar
1 USD= 3.75 SAR

Saudi Arabia

Asia

United Arab Emirates dirham

AED

Pegged with U.S. dollar
1 USD= 3.6725 AED

United Arab Emirates (UAE)

Asia

Hong kong dollar

HKD

Pegged with U.S.dollar 1 USD=HK$7.75–7.85 (narrow band)

Hong kong
(Special administration of China)

Asia

Aruban florin

AWG

Pegged with U.S. dollar
1 USD= 1.89 AWG

Aruba

North America

Bahamian dollar

BSD

Pegged with U.S. dollar
at par

Bahamas

North America

Barbadian dollar

BBD

Pegged with U.S. dollar
1 USD= 2 BBD

Barbados

North America

Belize dollar

BZD

Pegged with U.S. dollar
1 USD= 2 BZD

Belize

North America

Bermudian dollar

BMD

Pegged with U.S.dollar
at par

Bermuda

North America

Cayman Islands dollar

KYD

Pegged with U.S.dollar
1 KYD = 1.2 USD

Cayman Islands

North America

Cuban convertible peso

CUC

Pegged with U.S.dollar
at par

Cuba

North America

East Caribbean dollar

XCD

Pegged with U.S. dollar
1 USD= 2.70 XCD

eight of the nine members of the Organisation of Eastern Caribbean States (OECS):
1.Antigua and Barbuda
2.Dominica,
3.Grenda,
4.Saint Kitts and Nevis,
5.Saint Lucia,
6.Saint Vincent and the Grenadines,
7.Montserrat
8.Anguilla (Associate membership)